Stocks Fall as Middle East War Widens | Closing Bell

Market Overview - The S&P 500 experienced a significant drop of about 2.4%, reaching its lowest level of the year at one point during the trading day [2][5] - The market has been trading within a tight range of approximately 200 points for the past three months, despite underlying sector and factor rotations causing volatility [2][3] Sector Performance - All 11 sectors in the S&P 500 closed in the red, with materials down 2.7%, industrials down 2%, and healthcare down 1% [6][7] - Financials were the relative outperformers, only declining by 0.2% [7] - Retailers such as Target and Best Buy showed better-than-expected performance, with Target's stock closing at its highest level in over a year [8][9] Company Earnings - Ross Stores reported a first-quarter EPS estimate of $1.06 to $1.70, slightly above the consensus estimate of $1.63 [21] - CrowdStrike's revenue increased by 23% year-over-year, aligning with estimates at approximately $1.3 billion [22] - Ross Stores' fourth-quarter comparable sales rose by about 9%, significantly exceeding the estimate of 4.92% [24] Consumer Spending Insights - Despite economic disruptions, consumer spending remains resilient, as indicated by strong performances from retailers [26][28] - The K-shaped recovery is highlighted, with credit card defaults primarily affecting lower-income consumers, while higher-income consumers continue to drive economic activity [27][28] - The success of discount retailers like Ross and Walmart suggests a potential "trade down" trend among consumers, which may not signal overall consumer health [29]